Karen the Supertrader - TastyTrade Hybrid Experiment

Sure, theta is not static, it changes relative to other things other then time. For example, theta changes with regards to vol, price and even skew. ALL derivatives has 2nd and 3rd order effects which is EXACTLY why retail traders should not rely on them. A pde is simply a measurement of a variable holding ALL ELSE CONSTANT. That does not exist in the real world. ALL other parts are moving and are not held constant which is why technically you need to understand 2nd and 3rd order effects.

Want a book? Fine, you can pick up a copy of "Dynamic Hedging" by Taleb.

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Maverick, I appreciate your book recommendation. I shall buy the book.
I am familiar with partial differentials. In my previous life, I built MRI scanners. I also understand the basic concepts of dynamic hedging. I read several books on quantitative finance. But I had missed Taleb's. I look forward to reading his work as I enjoyed his other book "fooled by randomness".
Thanks again for the pointer.

I've enjoyed my short time with this thread but I'm taking it to the garage. To those who have contributed - thank you!

This thread is just too easy of a target for those who just want to come in and make the "shit hits the fan" and "your account is going to blow up" comments.

I thought folks would appreciate a free sharing of trades along with questions and constructive criticism. I wanted to learn from this group about how to better enhance the strategy. We clearly have those criticizing who haven't even taken the time to look at my detailed spreadsheet where I've methodically recorded each and every trade. My life is too complicated and full to defend each and every attack on the strategy. It's a shame that the attackers don't even acknowledge my attempts to make the strategy safer. Is risk involved? Sure. But it was just an experiment. The experiment lives on - in my garage.

I've enjoyed my short time with this thread but I'm taking it to the garage. To those who have contributed - thank you!

This thread is just too easy of a target for those who just want to come in and make the "shit hits the fan" and "your account is going to blow up" comments.

I thought folks would appreciate a free sharing of trades along with questions and constructive criticism. I wanted to learn from this group about how to better enhance the strategy. We clearly have those criticizing who haven't even taken the time to look at my detailed spreadsheet where I've methodically recorded each and every trade. My life is too complicated and full to defend each and every attack on the strategy. It's a shame that the attackers don't even acknowledge my attempts to make the strategy safer. Is risk involved? Sure. But it was just an experiment. The experiment lives on - in my garage.

It's a shame that the attackers don't even acknowledge my attempts to make the strategy safer. Is risk involved? Sure. But it was just an experiment.

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GTC orders are not risk management with instruments that can gap overnight in an ever more 24/5(7) market place. Markets trade around the clock - and you cannot just depend on a GTC order on US stock security-baesd ETFs to be safe. I also haven't seen a single mention of ever using the underlying to hedge any delta risk.

You're severely underestimating the potential risk at play due to an inherently over-optimistic view of the future. This will kill you. You must assume that it is not totally guaranteed things will continue to function smoothly or even semi-smoothly.

You must be ready to take some shit from others on your strategy if it's questionable - and the fact that you're bailing so quickly doesn't sound like there's a whole lot of resilience behind it.

Bobby every option trader on here knows about this strategy. Infact when I started learning about options it was a strategy I reazlied straight away. But I didn't like it because if something serious happens then I will lose all my $$ / get margined out of my trades.

What people are advising to you on this thread is probably the best information you can get. I've been trading about 5 years and I wished I had of learnt about hedging my trades a long time ago. But you got this information here on this thread.

Bobby I think you should continue the Journal. I wouldn't look at the negative posts as negative, I would look at them as positive. You have received some excellent info from some knowledgeable traders on this thread. I think if you continue your experiment you will be a better trader for it, in the long run.

I've enjoyed my short time with this thread but I'm taking it to the garage. To those who have contributed - thank you!

This thread is just too easy of a target for those who just want to come in and make the "shit hits the fan" and "your account is going to blow up" comments.

I thought folks would appreciate a free sharing of trades along with questions and constructive criticism. I wanted to learn from this group about how to better enhance the strategy. We clearly have those criticizing who haven't even taken the time to look at my detailed spreadsheet where I've methodically recorded each and every trade. My life is too complicated and full to defend each and every attack on the strategy. It's a shame that the attackers don't even acknowledge my attempts to make the strategy safer. Is risk involved? Sure. But it was just an experiment. The experiment lives on - in my garage.

Peace out everyone and Happy Trading!

Bobby

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Bobby, take the advice. Maverick got it right. Theta is an illusion. It's sexy, sounds good to be earnt, but it's an illusion. It's always coupled with gamma. And gamma hits the fan.